Ind. Code ch. 5-1.2-9

in effect

Ind. Code § 5-1.2-9-1 Purposes of this chapter

Sec. 1. The general purpose of this chapter is to provide financing for economic development projects. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-9-2 Applicability

Sec. 2. This chapter applies only to economic development projects and not to any other facilities or projects financed by the authority. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-9-3 Public offering for sale or lease of property

Sec. 3. The authority may, instead of a private sale or leasing as authorized by IC 5-1.2-4-1(a) or a financing of an economic development project under section 12 of this chapter, decide to hold a public offering under this chapter for the sale or leasing of any land or interests in land, building improvements, structures, personal property, and franchises and patents acquired by the authority under this article for an economic development project. If the authority decides to hold a public offering for the sale or leasing of any property or interests acquired for an economic development project, the offering shall be made in accordance with this chapter. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-9-4 Public offering; requirements; offering sheet

Sec. 4. Before offering for sale or lease to the public any property or interests acquired for an economic development project, the authority shall prepare an offering sheet showing the property or interests to be offered and copies of the offering sheets shall be furnished to prospective buyers or lessees. Maps and plats of the property and any additional information considered appropriate by the authority shall also be kept available for inspection at the office of the authority. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-9-5 Notice

Sec. 5. The authority shall publish a notice of the offering in accordance with IC 5-3-1. The notice must state that at a designated time the authority will open and consider written offers for the purchase or lease of the property or interests being offered. In giving the notice, it is not necessary to describe specifically the property or interests or to specify the exact terms of the disposition, but the notice must state the general location of the property or interests and call attention generally to any requirements or limitations that the authority may establish in respect to the economic development project. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-9-6 Offers

Sec. 6. At the time fixed in the notice, the authority shall open and consider any offers received. All offers received shall be opened at public meetings of the authority and shall be kept open for public inspection. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-9-7 Award to highest and best bidder; factors that may be considered; rejection

Sec. 7. The authority may reject any or all bids or may make awards to the highest and best bidder or bidders. In determining the highest and best bids, the authority may take into consideration the following: (1) The size and character of the improvements for the economic development project as proposed by the bidder to be made on the property and the terms and conditions of the consideration offered by the bidder. (2) The bidder's plans and ability to carry out the economic development project with reasonable promptness. (3) Whether the property and interests to be acquired by the bidder will be leased or released for the economic development project. (4) The nature and extent of any obligations to be undertaken by the authority in conjunction with the improvement of the property or interests to be acquired for the economic development project as proposed by the bidder. (5) The potential impact of the bidder's proposal on the creation of new employment or the retention of existing employment resulting from the economic development project. (6) The potential impact of the bidder's proposal to attract or establish a major new business enterprise or to retain or expand a significant existing business enterprise that will provide or preserve gainful employment for the citizens of the state. (7) The economic benefits to the state and its citizens that will result from the economic development project, as proposed by the bidder, including the dollar volume of new or preserved wages and salaries, increases in or preservation of state and local government tax revenues, the incremental economic benefits to the citizens of the state, the state, and local governmental units potentially resulting from the economic development project as proposed by the bidder, and any other direct or indirect economic benefit to the state and its citizens resulting from the economic development project as proposed by the bidder. (8) The potential impact and benefit to the state and its citizens of the economic development project as proposed by the bidder from the standpoint of both human and economic welfare. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-9-8 Cost benefit analyses

Sec. 8. In making an award to the highest and best bidder as provided in section 7 of this chapter, the authority shall determine whether in its judgment the potential benefits to the state and its citizens of the economic development project as proposed by the bidder exceed the direct costs to the authority of acquiring the property and interests being offered for sale or lease for the economic development project less any sums to be paid by the successful bidder pursuant to its bid. The authority's judgment concerning this determination shall be based on the economic studies, analyses, and projections that the authority determines are reasonably necessary. The authority's determination is final and conclusive. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-9-9 Contracts with a bidder; provisions

Sec. 9. The authority may contract with a bidder concerning any of the factors listed in section 7 of this chapter, and the contract may provide for the deposit of surety bonds, the making of good faith deposits, liquidated damages, the right of reversion or repurchase, or other rights and remedies if the bidder fails to comply with the contract. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-9-10 Sale, exchange, or lease of property; terms; time period

Sec. 10. After the opening, consideration, and determination of the written offers filed in response to the notice, the authority may dispose of all or part of the remaining available property or interests for any approved use, either at public sale or by private negotiation carried on by the authority, its regular employees, or real estate experts employed for that purpose. For a period of thirty (30) days after the opening of the written offers and determination on them, no sale, exchange, or lease may be made on terms less than that shown on the offering sheet, but after that period the authority may adjust the offering terms the authority considers necessary to further the economic development project. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-9-11 Action to contest validity

Sec. 11. An action to contest the validity of any sale or lease awarded and approved by the authority under this section may not be commenced more than thirty (30) days following the authority's adoption of a resolution designating the successful bidder or bidders and stating and approving the basic terms and conditions of the sale or lease. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-9-12 Negotiation of financing agreements; considerations; expenses

Sec. 12. The authority may enter into negotiations with one (1) or more persons concerning the terms and conditions of financing agreements for economic development projects. The authority shall consider whether a proposed economic development project may have an adverse competitive effect on similar economic development projects already constructed or operating in the local governmental unit where the economic development project will be located. Preliminary expenses in connection with negotiations under this section may be paid from: (1) money furnished by the proposed user or developer; (2) money made available by the state or federal government, or by any of their departments or agencies; or (3) money of the authority. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-9-13 Report for proposed economic development project; plan commission; school superintendent

Sec. 13. The authority shall prepare a report that: (1) briefly describes the proposed economic development project; (2) estimates the number and expense of public works or services that would be made necessary or desirable by the proposed economic development project, including public ways, schools, water, sewers, street lights, and fire protection; (3) estimates the total costs of the proposed economic development project; (4) for an economic development project that is not exclusively either a pollution control facility or an educational facility project, estimates the number of jobs and the payroll to be created or saved by the project; (5) for educational facility projects, describes how the project promotes the educational enrichment (including cultural, intellectual, scientific, or artistic opportunities) of the people of the state; and (6) for pollution control facilities, describes the facilities and how they will abate, reduce, or prevent pollution. The report shall be submitted to the executive director or chair of the plan commission, if any, having jurisdiction over the economic development project and, if the number of new jobs estimated exceeds one hundred (100), to the superintendent of the school corporation where the economic development project will be located. The executive director or chair of the plan commission and the school superintendent may formulate their written comments concerning the report and transmit their comments, if any, to the authority within five (5) days after the receipt of the report. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-9-14 Public hearing

Sec. 14. The authority shall hold a public hearing, which may be conducted by the authority, or any officer, member, or agent designated by the authority, on the proposed financing agreement for the economic development project, after giving notice by publication in one (1) newspaper of general circulation in the city, town, or county where the economic development project is to be located at least ten (10) days in advance of this public hearing. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-9-15 Approval of proposed financing agreement

Sec. 15. If the authority finds that the economic development project will be of benefit to the health, safety, morals, and general welfare of the area where the economic development project is to be located, and complies with the purposes and provisions of this chapter, the authority may by resolution approve the proposed financing agreement. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-9-16 Financing agreement; payment provisions

Sec. 16. A financing agreement approved under this chapter must provide for payments in an amount sufficient to pay the principal of, premium for (if any), and interest on the bonds authorized for the financing of the economic development project. However, interest payments for the anticipated construction period, plus a period of not more than one (1) year, may be funded in the bond issue. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-9-17 Financing agreement; limit on term of an agreement

Sec. 17. The term of a financing agreement may not exceed fifty (50) years from the date of any bonds issued under the financing agreement. However, a financing agreement does not terminate after fifty (50) years if a default under that financing agreement remains uncured, unless the termination is authorized by the terms of the financing agreement. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-9-18 Financing agreement; requirement for user or developer to pay costs if authority retains an interest in the project

Sec. 18. If the authority retains an interest in the economic development project, the financing agreement must require the user or the developer to pay all costs of maintenance, repair, taxes, assessments, insurance premiums, trustee's fees, and any other expenses relating to the economic development project, so that the authority will not incur any expenses on account of the economic development project other than those that are covered by the payments provided for in the financing agreement. As added by P.L.189-2018, SEC.25. Amended by P.L.10-2019, SEC.19.

Ind. Code § 5-1.2-9-19 Financing of projects for developers or users through issuance of bonds

Sec. 19. The authority may initiate programs for financing economic development projects for developers and users in Indiana through the issuance of bonds under this article. In furtherance of this objective, the authority may do any of the following: (1) Establish eligibility standards for developers and users, without complying with IC 4-22-2. However, these standards have the force of law if the standards are adopted after a public hearing for which notice has been given by publication under IC 5-3-1. (2) Contract with any entity securing the payment of bonds issued under this chapter and authorizing the entity to approve the developers and users that can finance or refinance economic development projects with proceeds from the bond issue secured by that entity. (3) Lease to a developer or user economic development projects upon terms and conditions that the authority considers proper and, with respect to the lease: (A) charge and collect rents; (B) terminate the lease upon the failure of the lessee to comply with any of its obligations under the lease or otherwise as the lease provides; and (C) include in the lease provisions that the lessee has the option to renew the term of the lease for those periods and at those rents as may be determined by the authority or to purchase any or all of the economic development projects to which the lease applies. (4) Lend money, upon terms and conditions as the authority considers proper, to a developer or user under an installment purchase contract or loan agreement to: (A) finance, reimburse, or refinance the cost of an economic development project; and (B) take back a secured or unsecured promissory note evidencing such a loan or a security interest in the economic development project financed or refinanced with the loan. (5) Sell or otherwise dispose of any unneeded or obsolete economic development project under terms and conditions determined by the authority. (6) Maintain, repair, replace, and otherwise improve or cause to be maintained, repaired, replaced, and otherwise improved any economic development project owned by the authority. (7) Require any type of security that the authority considers reasonable and necessary. (8) Obtain or aid in obtaining property insurance on all economic development projects owned or financed, or accept payment if any economic development project property is damaged or destroyed. (9) Enter into any agreement, contract, or other instrument with respect to any insurance, guarantee, letter of credit, or other form of credit enhancement, accepting payment in the manner and form as provided in the instrument if a developer or user defaults, and assign the insurance, guarantee, letter of credit, or other form of credit enhancement as security for bonds issued by the authority. (10) Finance for eligible developers and users in connection with an economic development project: (A) the cost of their economic development projects; and (B) in the case of a program funded from the proceeds of taxable bonds, working capital associated with the operation of the economic development project; in amounts determined to be appropriate by the authority. (11) Issue bonds to fund a program for financing multiple, identified or unidentified economic development projects if the authority finds that issuance of the bonds will be of benefit to the health, safety, morals, or general welfare of the state and complies with the purposes and provisions of this article by promoting a substantial likelihood for one (1) or more of the following: (A) Creating opportunities for gainful employment. (B) Creating business opportunities. (C) Educational enrichment (including cultural, intellectual, scientific, or artistic opportunities). (D) The abatement, reduction, or prevention of pollution. (E) The removal or treatment of any substances in materials being processed that would otherwise cause pollution when used. The authority may by resolution approve the proposed taxable bond issue. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-9-20 Requirements that must be complied with before entering into a financing agreement

Sec. 20. As each unidentified economic development project is identified for possible funding from a program under section 19(11) of this chapter, the requirements of sections 12, 13, 14, 15, and 16 of this chapter shall be complied with as a condition precedent to entering into a financing agreement for the funding of the economic development project. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-9-21 Bonds not general obligation of the state

Sec. 21. Bonds issued to fund a program under this chapter are not in any respect a general obligation of the state, nor are they payable in any manner from revenues raised by taxation. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-9-22 Taxable bonds; payment provisions

Sec. 22. Any resolution adopted to authorize the issuance of taxable bonds to fund a program under section 19(11) of this chapter may provide that the bonds are payable solely from: (1) revenues and receipts derived from the various financing agreements; or (2) the payments made under any other agreements to secure the obligations of the developers, users, related persons, or the authority. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-9-23 Power to engage in financing activities; purchase of a loan

Sec. 23. (a) The authority may invest in, purchase or make commitments to invest in or purchase, and take assignments or make commitments to take assignments of, loans made for the acquisition, construction, installation, rehabilitation, or purchase of economic development projects. (b) Before investment, purchase, assignment, or commitment, the lender shall certify that the proceeds of the authority's bonds will be used to make loans to provide financing for economic development projects, or pending the making of the loan, invested in short term obligations complying with the requirements of this article. (c) The authority shall purchase a loan at a purchase price equal to the outstanding principal balance, but the authority may require a discount from the principal balance or make a payment of a premium to effect a fair rate of return for the lender, as determined by the rate of return on comparable investments under market conditions existing at the time of purchase. (d) In addition to the payment of the outstanding principal balance, the authority shall pay the accrued interest due on the loan, on the date the loan is delivered against payment for the loan or on another date as may be established by agreement between the authority and the selling lender. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-9-24 Lender certifications

Sec. 24. Before exercising any of the powers authorized in section 23 of this chapter, the authority shall require the lender to certify and agree that: (1) the loan is, or, if the loan has not been made, will be, at the time of making, in all respects a prudent investment; and (2) the lender will make the loan and sell the loan to the authority within a reasonable period of time. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-9-25 Guarantees; secured loans; reservation of funds

Sec. 25. Before exercising any of the powers conferred by section 23 of this chapter, the authority may: (1) require that the loan involved be insured by a loan insurer or be guaranteed by a loan guarantor; (2) require any type of security that the authority considers reasonable and necessary; or (3) authorize the reservation of funds by lenders in the amount and subject to conditions as the authority considers reasonable and necessary under this chapter. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-9-26 Power to issue bonds; cumulative term of refunding bonds

Sec. 26. (a) The authority has the power to issue, from time to time, bonds to renew or to pay bonds, including the interest on these bonds, if these bonds have been issued to finance projects that constitute economic development projects, and whenever the authority considers refunding expedient, to refund any bonds by the issuance of new bonds, whether the bonds to be refunded have or have not matured, and to issue bonds partly to refund outstanding bonds and partly for any other of its corporate purposes as long as the bonds to be refunded were issued to finance projects that constitute economic development projects. (b) With respect to any bonds issued under this chapter, the cumulative terms of refunding bonds may not exceed fifty (50) years. (c) Refunding bonds issued under this section are payable solely from revenues and receipts derived from: (1) financing agreements with the users or developers of the facilities originally financed by the outstanding bonds, or related persons; or (2) payments made under guaranty agreements by developers, users, or related persons. The financing agreements or guaranties may be new financing agreements or guaranties or amendments of the original financing agreements or guaranties. (d) Sections 13 and 15 of this chapter do not apply to the issuance of refunding bonds under this section. As added by P.L.189-2018, SEC.25.

Ind. Code § 5-1.2-9-27 Property not public property; not exempt from taxation

Sec. 27. (a) Property owned by the authority and leased to a person for an economic development project is not public property. (b) Any economic development project financed by a loan under the authority of this chapter is not public property and is not exempt from any taxes of this state, or any county, city, or other political subdivision of this state, except for pollution control equipment. (c) The property and the economic development project are subject to all taxes of this state or any county, city, or other political subdivision of this state in the same manner and subject to the same exemptions that apply to all persons. As added by P.L.189-2018, SEC.25.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/5Fetched: 10/17/2026